Receive update on the impacts of H.R. 1, the One Big Beautiful Bill Act, on Yolo County Health and Human Services Agency Operations and to CalFresh Administration for fiscal year 2026-27. (No general fund impact) (Morales) (Est. Staff Presentation: 10 min)

Receive update on the impacts of H.R. 1, the One Big Beautiful Bill Act, on Yolo County Health and Human Services Agency Operations and to CalFresh Administration for fiscal year 2026-27. This item is informational only. No action is requested at this time.

The Yolo County Health and Human Services Agency (HHSA) is providing an update to the Board of Supervisors on the expected impacts of HR 1 on CalFresh administrative funding. HR 1 shifts a larger share of CalFresh, known nationally as the Supplement Nutrition Assistance Program (SNAP), administrative costs from the federal government to state and county governments. These changes will significantly increase the County’s required contribution for administering CalFresh beginning in October 2026.

The purpose of this report is to share projected cost increases, outline potential budget impacts under several administrative funding scenarios, and provide information on HHSA’s early planning to prepare for these changes.
SNAP is the nation’s largest nutrition program, serving approximately 13% of the county’s population. While benefits are fully federally funded, the cost to administer the program in California is shared across federal, state, and county governments. Under current state statute, counties cover 15 percent of CalFresh administrative costs. Under HR 1, this will increase the county’s share to 22.5 percent beginning October 1, 2026 — a 7.5 percent increase.

Given CalFresh’s importance as a safety-net program for thousands of Yolo County residents, these changes will have both operational and fiscal implications for HHSA and the County.

Overview of Administrative Cost Shifts Under HR 1
HR 1 significantly alters how CalFresh administrative costs are shared across governments. To help the Board understand the range of potential impacts, HHSA developed three budget scenarios. These scenarios are planning tools only and are not recommendations or final budget decisions.

CalFresh Administrative Funding Scenarios (HR 1 Impact)

Scenario A – Maximize CalFresh Administrative Allocation
Under this option, Yolo County would fully maximize the CalFresh administrative funds available under HR 1. Total administrative funding would increase to 16,767,183 dollars, with the County responsible for the new 22.5 percent share. The County contribution under this scenario would be $3,772,616, an increase in the County share of $1,855,427. This represents the highest possible level of investment in CalFresh administration under the new funding structure. Maximizing CalFresh Administrative funds would allow HHSA's Service Center to hire two (2) additional teams. One team could focus on outreach to hard-to-reach populations and the additional team could process approximately 3,000 up-to 5,000 new enrollment applications. 

Scenario B – Fund CalFresh at the Adopted FY 2025–26 Budget Level

Scenario B applies the new 22.5 percent county share to the existing FY 2025–26 adopted CalFresh administrative budget. This option maintains current administrative capacity while absorbing the increased County cost required by HR 1. The County share under this scenario would be $2,869,814, an increase in the County share of $952,625. This represents a middle-range investment aligned with current service levels.

Scenario C – Maintain the Current County Dollar Contribution
Scenario C holds the County contribution at its current approximate dollar amount rather than increasing it to meet the new 22.5 percent share. Under HR 1, this approach would require reducing the total CalFresh administrative budget. The County share would remain at $1,917,189, resulting in an overall administrative budget reduction of $4,233,890. This would require service reductions and would not support current caseload or operational demands.

Impact of Budget Reduction
A reduction to the CalFresh administrative budget would inevitably lead to declining service levels and reduced access for the community. The program currently relies on 73 allocated Full-time Equivalent (FTE) positions (65 after applying typical salary savings) to maintain Monday through Friday office hours from 8am to 4pm across four Service Center locations, along with full Call Center coverage during the same hours. Reducing the overall budget while HHSA works to implement other HR 1 policies will also have implications for how effective the agency can be in mitigating additional harm to program participants. 

A budget reduction of the scale described in Scenario C would require cutting administrative capacity by roughly one-third, potentially leading to a reduction of approximately 8,400 individuals served and significantly impacting the County’s ability to process applications, respond to community needs, and maintain program compliance.

CalFresh Data By City/Rural Population

County Welfare Directors Association
California State Association of Counties
California Department of Social Services